Per Financial
MOVABLE PPE Per RPCPPE Variance
Statement
17 Other Transportation Equipment 419,150.00 419,150.00 0.00
FURNITURE, FIXTURES & BOOKS
18 Furniture and Fixtures 14,149,369.02 17,618,420.82 (3,469,051.80)
19 Books 117,853.00 2,153,976.00 (2,036,123.00)
OTHER PPE
20 Other PPE 16,658,356.36 16,613,441.36 44,915.00
TOTAL PPE ₱753,170,785.01 ₱743,639,956.76 ₱9,530,828.25
1.6. More than five years have passed since the Circular came into effect. This extended
period should have been sufficient for CGSO to initiate and complete the preliminary
activities and to begin verifying the PPE inventory prior to the commencement of the
physical inventory by the Inventory Committee. Had the City exerted effort to take
full advantage of the one-time cleansing opportunity, it is likely that the PPE balances
could have been reconciled properly. This would have allowed for the resolution of
the noted variance and the elimination of unidentifiable items. Ultimately, it would
have led to the establishment of correct PPE balances that are verifiable in terms of
their existence, condition, and accountability.
1.7. The CGSO admitted that they have no knowledge of the existing Circular, thus, they
were not able to apply the procedures outlined therein.
1.8. Due to the unresolved discrepancy of ₱9,530,828.25, the validity, existence, and
accuracy of the movable PPE accounts totaling ₱753,170,785.01, as reported in the
CY 2024 financial statements, cannot be confirmed. As a result, these financial
statements cannot be relied upon, and the fair presentation of the PPE accounts may
be compromised.
1.9. We recommended and the City Mayor agreed to:
1.9.1. Create the Inventory Committee to comply with the minimum
requirement in terms of membership;
1.9.2. Direct the revamped Inventory Committee to carry out the one-time
cleansing of PPE, in accordance with the provisions of COA Circular No.
2020-006;
1.9.3. Instruct the Inventory Committee to submit the RPCPPE and other
required reports to the Audit Team, ensuring full compliance with COA
Circular No. 2020-006; and
1.9.4. Require the City Accountant and the Property and Supply Officer to
regularly reconcile the records, investigate any discrepancies, and make
the necessary adjustments to ensure the accurate presentation of the PPE
account balances.
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